Kampala Businessman Pleads for Mercy in UGX 7.2 Billion Tax Fraud Case

(Kampala) – The Director of Solento General Enterprises Limited, Lui Xiang Fei, is currently negotiating with the Uganda Revenue Authority (URA) to resolve his case involving Sh7.2 billion in alleged tax fraud through a plea bargain.

Lui Xiang Fei, the director of Solento General Enterprises Limited, is facing two charges related to making false statements to a tax officer, an offense under the Tax Procedures Code Act of 2014. Fei’s case was discussed in court on November 15, 2024, where the prosecution, led by Allan Scot Nkoyoyo, informed the Anti-Corruption Court in Nakasero that both parties are working on a potential plea agreement.

A plea bargain allows an accused individual to plead guilty to charges in exchange for a lighter sentence or other concessions. However, Nkoyoyo told the court that an agreement had not yet been finalized, and he requested more time to continue discussions.

Fei is accused of making false statements to a URA officer between November 2022 and January 2024. The prosecution claims that Fei, as the director of Solento General Enterprises Limited, under declared sales worth Sh4.3 billion in the company’s value-added tax (VAT) returns for the periods of October 2022 and December 2023.

In the second count, Fei is accused of altering income tax returns for the financial years 2022 and 2023 in December 2022. The prosecution alleges that he under-reported tax liabilities amounting to Sh2.9 billion during this period, again in violation of tax laws.

Fei has denied all charges against him. Under the Tax Procedures Code Act of 2014, an individual found guilty of making false statements to avoid tax payments can face a penalty of up to three years in prison or a fine of up to Sh5 million.

The case has been adjourned to January 23, 2025, for mention, at which time the court will receive an update on the status of the investigation and whether the plea negotiations have been successfully concluded.